Automatic exchange of information: updates in Hong Kong

Hong Kong, 22 March 2017

Hong Kong signed an agreement with six more jurisdictions, namely Belgium, Canada, Guernsey, Italy, Mexico and the Netherlands for conducting automatic exchange of financial account information in tax matters (“AEOI”). This news was announced by the Hong Kong government on March 17, 2017.

Hong Kong has so far signed an agreement for AEOI with nine jurisdictions. AEOI with Japan and United Kingdom will commence in 2018 with respect to the 2017 account information, while that with Korea is expected to commence in 2019 as announced by the Inland Revenue Department (“IRD”). The IRD has not yet announced when AEOI with Belgium, Canada, Guernsey, Italy, Mexico and the Netherlands will commence.

To put in place a legislative framework for Hong Kong to implement AEOI, the government has to put these jurisdictions into a list of “reportable jurisdictions” under the Inland Revenue Ordinance (“IRO”). Japan and the United Kingdom, the jurisdictions that AEOI will commence in 2018, has already been included in the list of “reportable jurisdictions” under the IRO. The Government will later amend the list of “reportable jurisdictions” to include Korea, Belgium, Canada, Guernsey, Italy, Mexico and the Netherlands in the list.

Our previous tax newsletter on the AEOI developments in Hong Kong can be accessed below: